You can based on the pricing policy. Price policy. The general scheme for determining such a price is as follows

Each of the famous traditional healers has his own recipe for treating prostate adenoma.
In addition, effective folk remedies are used to treat prostate adenoma. This article describes the most popular methods of treating prostate adenoma in folk medicine.

Traditional treatment of prostate adenoma according to Ilyin

The course of treatment for prostate adenoma and prostatitis, recommended by A.M. Ilyin, contains 3 parts. 1) Fry groundnuts (peanuts) well in a frying pan. After cooling, remove the shells from the fruits and crush. Then 2 tbsp. put crushed nuts in a thermos along with 3 tbsp. chopped marshmallow rhizome and pour 500 ml of boiled milk. Leave in an open thermos for 20 minutes, then tightly close the thermos with a stopper for 10 hours. Take half a glass of infusion 3-4 times a day 20-40 minutes before meals. In the evening after eating, you should eat a small head of onion and 1-2 cloves of garlic.
Continue treatment for 10 days. After a two-week break, proceed to the second part of the course. 2) A. Rinse 3 cups of oats with spikelet scales well and place in an enamel pan. Add 3 tbsp there. birch buds, pour 4 liters of cold boiled water and leave for 24 hours in a cool place. B. Rinse a glass of dried rose hips with cold water and place in an enamel bowl. Pour 1 liter of boiling water. Boil for 10 minutes, leave overnight in a cool place. B. Place the pan with oats and birch buds on the fire, let it boil, then add 2 tbsp. crushed rhizome of creeping wheatgrass. Boil for 15 minutes over low heat with the lid tightly closed, stirring occasionally. Then add 2 tablespoons of the medicinal mixture to the pan. knotweed herbs, oregano, lingonberry leaves, wild strawberries and hazel (hazel) and the same amount of hop cones, St. John's wort and mint leaves. Mix the contents of the pan well and boil for another 15 minutes, stirring every 5 minutes. Remove the pan from the heat and leave for 45 minutes. Filter the broth through one layer of gauze. Pour the resulting decoction and rosehip infusion into one container. Store the resulting composition in the refrigerator for no more than five days.
Usage: in the morning and before lunch, an hour before meals, eat 1 des.l. flower pollen. First, to check whether the body tolerates pollen, you should eat a small amount of it. Pollen can be replaced with beebread; it is also called bee bread.
Take the prepared mixture warm, half a glass 30 minutes before meals three times a day. At each dose, add 2 tsp to the composition. 5% aqueous solution mummy and 30-40 drops of 7% propolis tincture. Patients over 70 years of age should use not 5%, but 3% mummy solution. In the evening, eat a small head of onion and 1-2 cloves of garlic.
Continue treatment for 10 days. All this time in the morning and before bed, you should do a five-minute massage of the prostate gland with your finger. To do this, you need to take a comfortable position and put a rubber fingertip lubricated with Vaseline on the middle finger of your hand. Insert your finger into the anus and massage clockwise, pressing moderately in the direction of the navel.
Preparation of propolis tincture. Grind 100 g of propolis, pour into a dark glass bottle with a capacity of 0.75-0.8 l, add 2 tbsp. crushed horse chestnut shells and pour 7% ethyl alcohol so that the alcohol level is 2-3 cm higher than the solid components. Keep the bottle in a dark place for 7 days. Then add 70% alcohol and leave in a dark place for another three weeks, shaking occasionally.
To get 70% alcohol, you need to dilute 500 ml of 96% medical alcohol and 250 ml of water. And to get 7%, you need to add 180 ml of water to 20 ml of 70% alcohol.
Having prepared the propolis tincture, pour its liquid fraction into a separate bottle and tightly cap it. After a ten-day treatment, you should rest for two weeks, after which you should begin the third part of the treatment. 3) Completely repeat points 2A and 2B of the second part of the treatment. And in point 2B, the collection of herbs will be different.
Place the pan with oats and birch buds on low heat, close the lid tightly and boil for 15 minutes from the moment of boiling. Then put 3 tbsp of herbal mixture into it. herbs of hernia glabra or woodlice, leaves of common raspberry and hazel (hazel), 2 tbsp. tricolor violet herb (pansy), cuckoo flower, St. John's wort, prickly tartar leaves and 1 tbsp. bearberry leaves (bearberry).
Before putting it into the pan, the collection should be mixed thoroughly. Boil for 15 minutes, stirring every 5 minutes. Leave for 45 minutes, strain. Store and use the composition in the same way as in the second part of the treatment, but without adding mumiyo
Treat with this remedy for 10 days, performing a massage of the prostate gland.
The course of treatment can be repeated only after a month's break. If there is no herb in the collection, you can prepare the composition without it - the treatment will still bring significant relief.

Traditional treatment of prostate adenoma according to Zavadsky

For urinary retention, Dr. Zavadsky recommends. Pour a glass of boiling water over a medium-sized parsley root, boil for 5 minutes, add boiled water to the previous volume, leave for 12 hours. Drink the infusion 1-2 tbsp. 4 times a day 20 minutes before meals and at night, warm. At the same time, do hot sitz baths at night. To do this, take knotweed, aspen bark and calendula flower (half a glass of all components) and pour 3 liters of boiling water. Boil for 15 minutes, add boiled water, leave for 4-6 hours. Take ten baths (daily or every other day). Then - a week break, after which the course is repeated. Total - 3 courses.

Alternative treatment of prostate adenoma according to Sinyakov

Famous herbalist A.F. Sinyakov suggests treating prostate adenoma using bee products (honey, propolis, pollen), combining them with herbal infusions. He cites a case from personal practice when a 63-year-old patient with grade III adenoma significantly improved his general condition and there was no need for surgical intervention. The course of treatment lasted two months and was repeated after a month. It included
1) 5% propolis honey - 1 tsp. 2-3 times a day before meals (keep in mouth until completely dissolved). 2) Bee bread - 1 tsp. 3 times a day 1.5-2 hours before meals. 3) Rectal suppositories containing 0.1 g of propolis and 2 g of cocoa butter - once a day at night. 4) Herbal infusion: horsetail (herb) - 35 g, stinging nettle (leaves) - 35 g, lingonberry (leaves) - 30 g.
Pour 2 tablespoons of boiling water into a 0.5 liter thermos. dry crushed collection, leave for half an hour or an hour, strain and drink half a glass 3 times a day 30 minutes before meals.

Alternative treatment of prostate adenoma according to Lopushenko

A treatment program for prostate adenoma, developed and successfully used by folk healer Lopushenko.
1. Once a month, an injection of Sustanon-250 or Omnadren.
2. 1 tbsp. Chamomile herbs pour 250 ml of boiling water, leave for 20 minutes, strain. Do enemas 2 times a day, 50 ml at a temperature of 36-37 C. As you get used to it, bring the temperature to 42 C. Keep the liquid inside for up to 30 minutes.
3. Before going to bed, take warm baths with herbs of chamomile, nettle, motherwort at a temperature of up to 38 C, so that the bedspread is no higher than the urea. Each bath lasts up to 30 minutes with mandatory urination in the water.
4. Black poplar buds that bloom in spring are the best remedy for the treatment of prostatitis, cystitis, kidney disease, urinary incontinence, and prostate adenoma. Tincture: 2 tsp. leave crushed poplar buds in 100 ml of vodka for five days. Drink 20 drops 3 times a day. Infusion: 2 tsp. crushed kidneys, pour 300 ml of boiling water for 30 minutes, strain. Drink 100 ml 3 times a day 20 minutes before meals.
5. The herb Ivan tea is also an effective remedy in the treatment of prostate adenoma. 1 tbsp. crushed herbs, pour 200 ml of boiling water for 20 minutes, strain. Drink 1 tbsp. 4 times a day 20 minutes before meals.
6. Young shoots and ripe fruits of wild pear are a good remedy for the treatment of prostatitis and prostate adenoma. Brew a glass of fresh or dry fruits in 1 liter of water, like a compote, then add 2 tbsp. chopped leaves, immediately remove from heat and leave for 1 hour. Drink 4-5 glasses a day after meals.
7. Half-fallen grass (in a pharmacy) or the peel and fruits of horse chestnut are an excellent folk remedy for the treatment of prostatitis and prostate adenoma. Drink 3 glasses a day before meals.
8. It is useful to eat pumpkin seeds (zucchini) - 0.5 cups per day. Eat plenty of raw onions. Do not drink coffee, strong tea, or salty foods.

Traditional treatment of prostate adenoma according to Alain Caillas

The author of the book “Pollen” Alain Caillas recommends conducting one or more courses of pollen treatment every year for the treatment of prostate adenoma. Pollen can be eaten natural or ground into powder. Some types of pollen have an unpleasant bitterness, so wash it down with water mixed with sugar or honey. It is better to consume pollen on an empty stomach or shortly before meals. The usual rate is about 20 g per day for an adult man, enhanced - 32 g (in exceptional cases). For information: a teaspoon of dry pollen weighs 5 g, a dessert spoon - 10 g, a tablespoon - 15 g. The treatment course should last one month. But sometimes you should be treated all year, taking breaks for a week.

Traditional treatment of prostate adenoma using Begma's method

Prostate adenoma can be cured in 7 days, and prostatitis in just 4 days if you use M.N.’s method. Begmas. For prostate adenoma: hazel leaf - 10 g, golden rod grass - 8 g, hawthorn flower - 10 g, horehound grass - 10 g, steelhead root - 20 g, sparrow grass - 15 g, ash leaf - 12 g, sweet clover grass - 10 g, cinquefoil - 20 g, speedwell - 10 g, bedstraw grass - 10 g. 1 tbsp. mixture into 400 ml of boiling water, simmer over low heat for 5 minutes, leave for 1 hour. Drink 4 times a day, 50 ml between meals.

Traditional treatment of prostate adenoma using Feskin’s method

Complex treatment of prostate adenoma using the Feskin method. For the treatment of patients with prostate adenoma, two types of cocktails have been developed, which are prepared and infused for 2-3 hours. They are alternated every other day, taking them in the evening.
Cocktail I: 150-200 ml water, 1 tsp. honey, 1 tsp. apple cider vinegar, 1 tsp. flower pollen.
Cocktail II: 150-200 ml water, 1 tsp. honey, 1 tsp. apple cider vinegar, a drop of Lugol's solution.
For patients who cannot tolerate apple cider vinegar, the author of this treatment, I.P. Feskin recommends replacing it with apple juice or fruit compote (apples, dried apricots, raisins). These cocktails are recommended to be taken as a biostimulant, however, depending on the disease and condition of the patient, their components can be increased, decreased or eliminated. But only on the recommendation of a doctor. Honey and pollen are high-calorie foods rich in vitamins, microelements, and amino acids that increase the body's protective functions.
At the same time, therapeutic microenemas with propolis are also prescribed (for 0.4 liters of sunflower oil, 100 ml of a 30% alcohol solution of propolis; the composition must be heated to 35-37 C and shaken well to obtain a homogeneous mixture). Therapeutic microenemas are injected deeper into the rectum, 50 ml every other day. Only 10 microenemas per course of treatment.
Candidate for complex treatment of prostate adenoma medical sciences I.P. Feskin also used a decoction of dead bees. 3 tbsp. Podmore pour 0.5 liters of water and boil for an hour, then strain the liquid through cheesecloth, add 1 tsp. honey and 50 ml of alcohol (alcohol is necessary for preservation). Store the decoction in a dark place. Take 1 tbsp. 3 times a day after meals for a month, then take a break for two weeks and repeat the course.

Lifestyle for the treatment of prostate adenoma

All traditional healers agree that the main thing in the fight against prostate adenoma is the fight against blood stagnation in the pelvis. And here the main medicine is running, even jogging and at least 20-30 minutes a day. And also walking - in wide, sweeping steps, ten thousand steps a day at least. Gymnastics: squats, lying “bicycles,” and bending your knees to the sides are very useful.
The diet for prostate adenoma should include beets, carrots, cabbage, which have pronounced antioxidant activity, as well as yellow-green and red vegetables containing carotene (carrots, red peppers, onions with their phytoncidal properties, necessary in the treatment of inflammatory processes). Adaptogens are also important - ginseng, eleutherococcus, aralia, rhodiola and others

The role of celandine in the folk treatment of prostate adenoma

Among dozens of medicinal plants that prevent the development of prostate adenoma, a special place belongs to celandine. It is also best used in salads, 3-4 leaves per day. And in winter, use a tincture of dried celandine leaves with vodka in a ratio of 1:10, that is, 50 g of dried leaves are infused in 500 ml of vodka. Drink 1 tsp. 2 times a day.
Take celandine for 2-3 weeks, alternating its intake with befungin (birch mushroom) 0.5 tsp. 3 times a day. It is difficult to prepare birch mushroom extract yourself. You need to chop this dried mushroom and then boil it in water in a ratio of 1:10. Drink it 1 tsp. 3 times a day also for 2-3 weeks.

The role of hazel in the folk treatment of prostate adenoma

Hazel (hazelnut) plays a very important role in the folk treatment of prostate adenoma. Its young (May-June) leaves are used in salads, and the more mature ones are used in tincture (50 g of dried leaves per 500 ml of vodka). The tincture is taken 1 tbsp. 3 times a day. But it’s even better to make the tincture from mature dried crusts of crushed nuts. 50 g of dried crusts per 500 ml of vodka. Drink 1 tbsp of the tincture prepared in this way. 2 times a day before meals.
Plantain, fireweed, mistletoe, bergenia, Japanese sophora, and potato flowers are also useful for the treatment of prostate adenoma. An infusion of them is prepared as follows. 1 tbsp. raw materials are washed down with 500 ml of boiling water, take 1 tbsp. 3 times a day.

The role of hemlock in the folk treatment of prostate adenoma

Take 5-10 drops 3-4 times a day half an hour before meals or 2-3 hours after meals, tincture of clematis and 5 drops of hemlock tincture on a piece of sugar (and for diabetics - on a cracker). The course of treatment depends on the degree of the disease. You can take a break after 21-24 days for 7-10 days. If the result is positive, diuresis increases, urination improves, pain in the urethra disappears, and the tumor decreases or disappears completely. You need to know that with a dosage of 10-15 drops of clematis tincture, mild pain in the heart and head may be felt, which is caused by intensive resorption of sclerotic plaques on the walls of blood vessels in people suffering from sclerosis, and allergic rashes on the skin are also possible. In this case, the dosage should be reduced to 5 drops per dose. You should also know that hemlock is poisonous, so strict dosage with a pipette is required. It is better to prepare hemlock tincture according to V.V.’s method. Tishchenko. Having collected young shoots, fill 1/3 of the bowl with crushed raw materials (finely chop). Fill to the top with vodka, close and leave for 10-15 days in a cool, dark place. The tincture must be shaken periodically. But in emergency cases, you can start taking it on the third day.

The role of aspen bark in the traditional treatment of prostate adenoma

If ingesting alcohol tinctures is contraindicated for a patient, try collecting bark from a young aspen tree. Pour 1 tbsp into a jar. crushed aspen bark, pour a glass of boiling water, screw on the lid and place in a water bath for 1 hour. Then remove it all from the heat and leave to cool completely. Filter the contents of the bottle and give the patient 1-2 tablespoons. 3 times a day.

The role of red root in the folk treatment of prostate adenoma

Forgotten pennyweed (red root) has high vitamin and antioxidant activity, helps strengthen and restore capillary walls. The root has a pronounced anti-inflammatory and analgesic effect. This explains the widespread use of red root in the treatment of cardiovascular pathologies and various reproductive diseases. The plant has a unique effect on the genitourinary system: the red root cures chronic prostatitis and prostate adenoma, and helps with sexual impotence. Usually, the roots of the pennywort are used in the form of a tincture. 100 g of roots per 1 liter of vodka, infuse in a dark place for two weeks. Take 1 tsp. tinctures in 50 ml of water 2-3 times a day half an hour before meals.
But if it is undesirable for the patient to drink even such a small amount of alcohol, prepare the medicine according to the same recipe as aspen bark, and give 1 tbsp. 3 times a day half an hour before meals. The course of treatment is 25 days, then a break of 5-7 days and so on.

The role of the golden mustache in the folk treatment of prostate adenoma

For treatment you need burdock root and leaves or stem of golden mustache. Pour 1 tbsp. burdock root with two glasses of water, boil for 3 minutes and leave for 4 hours. Strained the broth, added 1 tsp. juice from golden mustache leaves. I drank 2 tbsp of medicine. 4 times a day half an hour before meals. I completed a 21-day course of treatment, rested for ten days and continued taking it.
For 7 days, drink a decoction of lungwort (1 tablespoon of herb per glass of water) with the addition of 0.5 tsp. golden mustache juice. A decoction of hazel leaves is also good (1 tbsp per two glasses of water) - also with the addition of 0.5 tsp. Callisia juice. Take this medicine for two weeks.

Traditional treatment of prostate adenoma with bee stings

In addition, in the treatment of chronic prostatitis and prostate adenoma, bee stings can be applied to biologically active points, mainly in the vegetative-segmental innervation and to the focus of the local pathological process. Bee stings were carried out in courses, starting from the lumbar region to the location of the adrenal glands. The course of bee stinging consisted of 15-20 sessions, which were carried out every other day, with one bee added at a time. The number of courses and sessions was determined individually depending on the clinical condition of the patient and the severity of the pathological process. The course of treatment was prescribed from 80 to 120 bee stings, but before it began, biological tests were required to test for sensitivity to bee venom and propolis.

Purpose of activity commercial enterprise– making a profit. The company receives income through the sale of goods and services. Sales can be either wholesale or retail. The key factor influencing the success of sales is the cost of the product being sold. Determining the cost depends on the pricing policy of the enterprise.

The concept of an enterprise's pricing policy

Price policy(CP) is a set of principles for establishing a certain price for goods and services. It is a marketing tool that influences sales success and company positioning. the main task pricing policy – ​​obtaining a stable profit from sales, ensuring competitiveness. There can be many side tasks. They depend on the specifics of the company’s functioning. When forming the CPU, the following points are taken into account:

• The impact of cost on a company's competitiveness.
• The organization's chances of winning a “price war.”
• The reasonableness of the chosen pricing policy for new products.
• Cost changes based on product life cycle.
• Possibility of establishing different base prices.

To form a value, it is possible to select a company that is similar in characteristics to the enterprise. It is assessed for the cost-to-benefit ratio.

Main goals of pricing policy

Let's consider the main goals of the company's pricing policy:

1. Continuation of the organization's activities. The company operates under the influence of such threats as excess capacity, high competition, and sharp changes in demand. Some of these risks can be addressed by reducing costs. However, the price reduction must be such that the income received covers the costs. This CPU goal is considered short term.
2. Short-term increase in profits. Sometimes the price of a product is changed to maximize profit. Often this goal is set within the framework of a transition economy. This is a short term task. In the long term, such a goal is not used, since a significant increase in cost will not allow it to win in the competition.
3. Short-term increase in sales. In this case, the cost of the product, on the contrary, decreases. An attractive price allows you to increase your sales volume. Alternative option– setting commissions for intermediaries, which also helps increase sales. This measure will allow you to extract maximum profits and also gain market share.
4. "Skimming the cream." This measure is relevant if the company implements new products. In this case, the highest possible cost is assigned. If sales start to fall, the price is reduced slightly to ensure turnover.
5. Long-term increase in profits. One of the current strategies is to create an image of a company that produces exceptionally high-quality products. If the client is confident in the quality of the product, he will be ready to purchase it at a high cost. This will enable long-term profit maximization.

To establish an optimal pricing policy, one goal is set. It is selected depending on the characteristics of a particular enterprise and its competitors.

Types of pricing policies

In practice, these forms of pricing policy are used:

1. High price policy. When a new product appears on the market, the highest possible price is set. This is relevant only for truly new products that are in demand and are protected by a patent. The cost gradually decreases if a decrease in demand is noticed.
2. Low price policy. Relevant if a company needs to quickly enter the market and gain its share. Suitable for stimulating demand. Used in markets with increased production volumes and increased elasticity of demand. The company's costs are covered by maximizing sales of low-cost products.
3. Differential pricing policy. The average cost of products changes under the influence of surcharges and discounts. Each consumer segment is offered a separate price for the product.
4. Preferential price policy. The company gets the opportunity to attract new customers through preferential offers. This method is suitable for expanding the sales market.
5. Flexible price policy. The cost is determined depending on the capabilities of consumers. Changes quite often.
6. Stable price policy. In this case, prices do not change for a long time. Suitable for everyday goods.

Before establishing a specific pricing policy, you need to carefully monitor changes in prices for goods on the market. Before choosing a strategy, you need to take into account internal (enterprise specifics) and external (market characteristics) factors.

IMPORTANT! The chosen policy changes from time to time. You cannot choose one strategy and use it for decades. Policy is determined depending on external factors that are constantly changing.

Factors influencing the pricing policy of an enterprise

There is no objectively ideal pricing policy. Its effectiveness is determined depending on a number of factors. Let's look at the factors affecting the CPU:

• The type of market in which the company operates. If it's a market perfect competition, the role of the CPU is minimal since the company has no control over price. The role of pricing policy under monopoly conditions is also minimal.
• Elasticity of demand. It can be direct, cross, depending on income.
• The size of the company, the number of divisions in it, the available capital.
• If an organization produces consumer products, it has greater influence on the CPU, as opposed to companies involved in the production of industrial goods.
• Small companies have limited freedom to influence prices.
• Product distribution channels. The manufacturer of the product can sell the product himself or use intermediaries for this. In the first case, the company's influence on the CPU is higher.
• Market segment.
• Geographical area.
• Presence of inflation.
• Amount of taxes.
• The degree of interference in the company's activities by government agencies.

The effectiveness of pricing policy depends not only on the efforts of the company, but also on many other enterprises. Not all organizations can influence value. The lowest performance of the CPU is observed in small companies with high taxation, in whose activities government agencies interfere.

How to determine the effectiveness of pricing policy?

The efficiency of a company's CPU is determined in the following ways:

• Compliance of the chosen pricing policy with the financial strategy of the organization.
• Realization of set goals. For example, a company wants to maximize sales figures. An appropriate pricing policy is selected. Over time, it is analyzed how much the sales market has increased. If the indicator has achieved its goals, the selected CPU is considered effective.
• Successful product sales. The main purpose of using CPU is to increase product sales. If products cannot be sold at the established price, the pricing policy cannot be called effective.
• Flexibility of pricing policy.
• The impact of set prices on profitability indicators.
• The influence of the CPU on the competitiveness of the organization, strengthening its position in the market.
• Ensuring financial stability.
• Adequacy of cost to product quality.
• Balanced prices.

When analyzing the effectiveness of pricing policy, it is necessary to take into account the main indicators of the success of the enterprise: profitability, sales level, competitiveness, increase in income.

Pricing policy is one of the most important areas of activity of an enterprise, indicating its effectiveness.

You will learn:

• What types of pricing policies are there depending on the type of market.
• How to choose a pricing strategy.
• How the company's pricing policy is formed.
• How to analyze pricing policy.
• What mistakes lead to management inefficiency? pricing policy companies.

What is the essence and goals of pricing policy

If free pricing is not possible, there are two options. The first is a strict limitation on the scope of natural prices. The second is allowing their free movement, but with regulation at the state level. When defining the objectives of a pricing policy, an enterprise must clearly understand what exactly it wants to achieve with a particular product.

The main goals and objectives of pricing policy throughout the entire market are to stop the decline in the production process, limit the rate of inflation, stimulate entrepreneurs, and increase profits through the production of goods rather than their prices. If a company knows exactly in which market it will promote its product and how best to position itself in a competitive and consumer environment, then it is much easier for it to form a set of marketing activities, including thinking through pricing, because the development of a pricing policy mainly depends on how the company plans to position itself in the market.

At the same time, the company may pursue other goals. If she clearly represents them, then, of course, she knows better what pricing policy suits her. Example: a company may strive to survive among competitors without losing its current position, increase revenue, become a market leader in its industry, or produce the highest quality product.

If a company has intense competition, then the main objective must be about survival. To ensure normal operation and sales of their products, enterprises have no choice but to sell goods at low prices in order to achieve customer loyalty. Here the primary task for them becomes survival, not increasing income. Until the reduced prices cover costs, struggling companies financial situation, somehow they can stay afloat.

The main goal for many companies is to maximize current income. Enterprises in this category study demand and production costs in relation to different price levels and settle on an acceptable cost that will help maximize current income and cover costs as fully as possible. If this is the case, it means the company is committed primarily to improvement. financial indicators and they are more important to her than achieving long-term goals.

Enterprises of another category strive for leadership in the industry, guided by the fact that companies that occupy first positions operate with the lowest costs and the highest financial performance. Striving for leadership, companies reduce prices as much as possible. One option for this goal may be the desire to achieve a specific increase in market share, which is the essence of the pricing policy of such enterprises.

Some companies want the quality of their products to be the highest among their competitors. Typically, luxury products are priced quite high to cover production costs and expensive research.

Thus, pricing policy is used by firms for different purposes, for example to:

• increase sales profitability, that is, the percentage of profit to total sales income;
• increase the return on the company's net equity (the ratio of profit to total assets on the balance sheet minus all liabilities);
• maximize the profitability of all company assets (the ratio of profit to the total amount of accounting assets, the basis for the formation of which is both own and borrowed funds);
• stabilize prices and income levels, strengthen market positions, that is, the company’s share in total sales for a given commodity market(this goal may be especially significant for companies operating in a market environment where the slightest price fluctuation causes significant changes in sales);
• achieve the highest rates of sales growth.

Expert opinion

Price is not the main indicator that determines the buyer’s choice

Igor Lipsits,

Professor, Department of Marketing, State University Higher School of Economics, Moscow

Many companies believe that it is the low price that, more than other indicators, influences the consumer’s decision to purchase a product. Such enterprises believe that by lowering the price they can increase sales. But that's not true. In fact, if the seller acts according to this scheme, the buyer thinks that the only advantage of the product is its low cost, and therefore does not pay attention to other important characteristics- quality, uniqueness, service.

The best option here is to increase the cost relative to competitors’ products, but at the same time draw the buyer’s attention to uniqueness, service, quality and other indicators that are important to him.

How to beat your competitor in a price war: 3 strategies

In an effort to maintain consumer flow, we often get involved in price wars. However, the blind, thoughtless implementation of such a strategy often leads to a significant loss of profit. Editorial staff of the magazine " Commercial Director” has identified three strategies for winning price wars.

Types of pricing policies depending on the type of market

The organization's pricing policy is largely determined by the type of market chosen to promote its products. Below we will look at four of its types. It should be noted that each of them has individual pricing problems:

1. Market pure competition.

In a purely competitive market, numerous sellers and buyers of similar products interact. Individual producers and consumers have almost no influence on current market prices. The seller has no right to install more high prices compared to market ones, since buyers can freely buy goods in any quantity they need according to the existing market value.

In a purely competitive market, sellers do not devote much time to the long-term formation of a marketing strategy. As long as the market remains a market of pure competition, the role marketing research, product development activities, pricing policies, sales promotion and other processes are limited.

2. Market monopolistic competition.

This type of market has its own specifics. Interacts on it a large number of sellers and consumers who make transactions not at a single market value, but in a wide range of prices. Their range here is quite wide. This is because sellers can offer consumers products in a variety of options. Specific products have different characteristics, design, and quality. Services associated with products may also differ. The consumer understands the features of different offers and is willing to pay different amounts for them.

To stand out with something other than price, companies develop many offers for individual customer groups, actively assign brand names to products, conduct advertising campaigns, use personal selling methods.

3. Market of oligopolistic competition.

In an oligopolistic market there are few sellers. Pricing policy and marketing strategies each other cause a rather sharp reaction in them. Sellers cannot significantly influence the price level, and for new applicants, penetration into this market is a rather complicated process. Therefore, competition here for the most part is not related to prices. Sellers strive to attract buyers in other ways: by improving product quality, conducting advertising campaigns, providing guarantees and good service.

Every seller operating in an oligopolistic market knows that if he lowers his price, others will certainly react to this. As a result, the demand that has increased due to the reduced cost will be distributed among all companies. The company that lowers its price first will receive only a certain percentage of the increased demand. If this company raises its price, others may not follow suit. Accordingly, the demand for its goods will decrease much faster than would happen with a general increase in prices.

4. Pure monopoly market.

In a pure monopoly market, producers control prices very carefully. The seller here is either a public or private regulated or unregulated monopoly.

A monopoly at the state level can pursue a certain pricing policy to achieve different goals. For example, setting the price for products that are important to the buyer below cost makes them more accessible. If the goal is to reduce consumption, the price can be set very high. The goal may also be to cover all costs and make a good profit.

If the monopoly is regulated, the state allows the enterprise to set the price, subject to certain restrictions. If the monopoly is unregulated, the company has the right to sell the product at any price, the maximum allowable under existing market conditions.

But monopolists do not set the highest possible prices in all cases. The law of demand states that when price increases, demand decreases, and when price decreases, demand increases. “Pure” monopolists remember: in order to sell an additional quantity of a product, it is necessary to reduce its cost. That is, a monopolist cannot set an absolute price for its product. He does not want to attract the attention of competitors, trying to conquer the market as quickly as possible, and is wary of introducing government regulation.

Pricing strategies and features of their choice

1. Pricing strategy, which is based on the value of the product (the “cream skimming” strategy).

Companies using this strategy set high prices for products in a small market segment and skim the cream as they achieve high profitability on sales. The cost is not reduced to ensure that new consumers who enter this market segment reach a higher level. This strategy can be used if the product’s characteristics are truly superior to analogues or are unique.

2. Strategy for following demand.

This strategy has a lot in common with skimming. But in this case, enterprises do not maintain high prices all the time and do not convince consumers to reach a qualitatively new, more respectable level. Companies are gradually reducing the price, carefully controlling this process.

Sometimes firms make minor adjustments to a product's design, features, and capabilities to make it different from its predecessors. Often, companies, in order to accommodate lower product costs, promote product sales, change packaging, or prefer a different distribution method. At each new lower level, the price is maintained long enough to satisfy current demand in full. As soon as sales begin to decline, the company immediately thinks about the next price reduction.

3. Penetration strategy.

Pricing policy methods are very diverse. There is also a so-called price breakthrough - this is the establishment of a very low cost. Companies resort to this method to quickly get used to a new market and secure cost advantages from production volumes. If the enterprise is small, such a strategy is unlikely to suit it, since it does not have the necessary production volumes, and the reaction from competitors is retail trade may turn out to be very tough and operational.

4. Strategy to eliminate competition.

This strategy is similar to the previous one, but has different goals. Its main task is to block competitors from entering the market. The strategy is also used to increase sales to the highest possible level before a rival enters the market. In this regard, the price is set as close to the costs as possible. This brings in little income and is only justified in the case of large sales.

For a small company, this strategy helps to concentrate on a small market segment. Thanks to it, there are opportunities for quick exit to the market, making a profit in as soon as possible and equally prompt withdrawal from this segment.

5. Other strategies.

There are other pricing strategies, namely:

• maintaining a stable position in the market environment (when the company maintains a moderate percentage of return on equity. In the West, this figure is 8-10% for large-scale organizations);
• maintaining and ensuring liquidity - the solvency of the company (within the framework of this strategy, the enterprise must mainly choose reliable partners through whom it could consistently make a profit; here it is reasonable for the company to switch to payment methods that are convenient for customers, begin to provide benefits to the most valuable partners, etc. );
• expanding the company’s export capabilities (this strategy is associated with “skimming the cream” in new markets).

Pricing policy must be conducted in accordance with legal regulations and not contradict them. But there are other strategies that companies should avoid using. Some of them are prohibited at the state level, others contradict those accepted in the market ethical standards. If an enterprise uses a prohibited strategy, it risks facing retaliatory actions from competitors or imposition of sanctions by government agencies.

Here are the prohibited pricing policy strategies:

• monopolistic price formation - a strategy associated with setting and maintaining monopolistically high prices. Companies resort to it to obtain excess profits or monopoly profits. There is a government ban on the use of this strategy;
• price dumping - in accordance with it, an enterprise deliberately lowers its prices relative to market prices in order to beat competitors. This strategy is associated with monopoly;
• pricing strategies based on agreements between economic entities that limit competition, including agreements aimed at:
• setting prices, discounts, surcharges, markups;
• increasing, decreasing or maintaining prices at auctions and trades;
• division of the market on a territorial or other basis, restriction of access to the market, refusal to enter into agreements with specific sellers or buyers;
• price formation strategies due to which the pricing procedure established by regulatory legal acts is violated;
• pricing and pricing policy for speculative purposes.

Any pricing strategy is a condition that determines how the product will be positioned in the market. At the same time, pricing policy in marketing is a function whose formation is influenced by certain factors. Among them:

1. Stages of the product life cycle.

This factor significantly influences both pricing and marketing strategy.

At the implementation stage, there are 4 types of pricing strategies.

During the growth stage, the level of competition usually increases. In this case, companies are trying to establish long-term cooperation with independent sales agents and are organizing their own sales channels. Their prices, as a rule, do not change. Companies strive to maintain rapid sales growth and, in pursuit of this goal, resort to improving and modernizing products, introducing improved products into untapped market segments, and intensifying advertising campaigns to encourage customers to buy them again.

At the maturity stage, the company reaches a stable level of sales and has regular customers.

At the saturation stage, sales volume finally stabilizes and repeated purchases support it. Here, enterprises spend more time searching for untapped market segments, developing activities to win the loyalty of new audiences, and also thinking about whether they can regular customers use the product in a new way and how.

To prevent a possible decline in sales, enterprises should take timely measures to prevent it - modify the product, work on quality, and improve characteristics. Sometimes it makes sense to reduce the price to make a product accessible to a wider consumer audience.

2. Newness of the product.

The price formation strategy is also influenced by what product the price is set for - a new one or one already existing on the market.

When deciding on a pricing strategy for a new product, an entrepreneur can act in three ways, namely:

Initially set the highest possible price for the product, focusing on wealthy buyers or those who first look at the quality and properties of the product and only then at the price. After the initial demand weakens and sales volumes decrease, the entrepreneur lowers the price, making the product available to a wider consumer audience. That is, in this case, the manufacturer is gradually covering profitable market segments. This pricing policy is called skim pricing.

Companies operating in accordance with it pursue short-term goals. It is reasonable to use this strategy if:

• demand for products is quite high;
• there is inelastic demand for the product;
• a company can effectively protect itself from competitors by obtaining a patent or continuously improving product quality;
• high cost in the eyes of buyers means good quality products.

First, an enterprise sets a low price for a product in order to fill a certain niche in the market, avoid competition, increase sales and occupy leadership positions. If the likelihood of competition persists, the company can, by reducing costs, further reduce the cost of the product. Another option is the desire to become a leader in quality. In this case, the company can increase the costs of scientific and technical development and increase prices.

If there is no threat of competition, the company needs to increase or decrease the cost in accordance with demand. However, it should be borne in mind that a price increase is justified only when the company is one hundred percent confident in the recognition and demand of its product among the consumer environment.

The company operates in accordance with the strategy of “penetration pricing”, striving to achieve long-term goals. This pricing policy is suitable for a company if:

• the demand for its products is quite high;
• there is elastic demand for the product;
• low prices do not attract competitors;
• low prices in the eyes of consumers are not synonymous with low-quality products.

3. Combination of price and quality of goods.

Pricing policy is a function that determines the positioning of products in the market environment by choosing the optimal combination of price and quality.

• Product quality control, which cannot be neglected

Table 1. Types of strategies based on price and quality

Strategies show how quality affects price changes. In the same market, it is permissible to simultaneously use strategies 1, 5 and 9. For them to be successfully implemented, the corresponding categories of buyers must be present in the market.

Strategies 2, 4, 6, 8 are transitional options.

The purpose of strategies 2, 3 and 6 is to displace competitors from positions 1, 5 and 9; These are strategies for creating value advantages.

Strategies 4, 7 and 8 demonstrate how prices increase in relation to the consumer characteristics of the product. If competition in the market is high, the company's reputation may suffer from using this method.

4. Market structure and the company’s place in the market environment.

The determining factors of pricing policy here are leadership, market development, exit from it, etc. Generally speaking, monopolism in a market environment is not synonymous with uncontrolled price increases, since there is always the risk of competitors appearing with less costly production technology or analogue products . If such a situation arises, new competitors have the opportunity to firmly establish themselves in the market, occupy a significant part of it and get ahead of the segment leader who is improving its lagging technologies. That is, to be a pricing leader, market prices must be kept fairly high so that fund returns continue to attract new investment, but also kept low enough to avoid competition.

Markets intermediate between an oligopoly and a market with big amount suppliers may be partly controlled by mutual agreement.

5. Competitiveness of the product.

This pricing policy involves the company comparing its product with competitors' products and setting the price based on demand. We should not forget about the influence of other factors, including the reputation of the company, the types and methods of distribution of products used, which contribute to the formation of the competitiveness of the company and its products.

This strategy can be considered safe only if the company is the undisputed leader in its products. The company must also know what guides consumers from different segments in the domestic and foreign markets when making purchases. At the same time, it may be difficult to determine competitors’ prices due to the presence of discounts and additional services, for example, free shipping, installation.

The strategies described above are not all the options that a company can use when setting prices. Each company has the right to develop its own pricing policy, based on many individual criteria.

Expert opinion

The only rational principle of pricing is profit orientation

Herman Simon,

CEO Simon-Kucher & Partners Strategy & Marketing Consultants, pricing expert, Bonn

My experience is that the price that generates maximum revenue is significantly lower than the price that generates maximum profit.

If you have a linear demand curve and a linear cost function, the price that maximizes revenue will be half the maximum price. The price that maximizes profit is located midway between the maximum price and variable expenses per unit of goods.

Let me give you an example. The company sells machine tools at a maximum price per unit of goods of $150. Variable costs per unit of production is $60. Wherein:

• the price that maximizes revenue is $75 (150:2). Losses on the sale of goods at this cost amounted to $7.5 million;
• the price that maximizes profit is $105 (60 + (150 – 60) : 2). Profit amounted to $10.5 million.

To maximize profits, change the motivation system. Tie the seller's commission to the size of the discount: the smaller it is, the greater his bonus. Our company has organized such systems for enterprises operating in different industries. Discounts are reduced by several percent, but sales remain at the same level. Buyers stay with us. So that the company can achieve better results, on a tablet or computer sales representative changes in the amount of his commission should be visible during price negotiations.

Expert opinion

4 Simple and Effective Ways to Manage Price

Yuri Steblovsky,

Customer Service Specialist, Runa Company

1. Cautious price increases. The main ones of this type are gradual changes and working so that buyers do not immediately notice them. It is necessary to increase the price not for all products in the assortment, but only for those products that customers do not use every day.
2. Price testing. On different days, they set different prices for the product, and then analyze which one customers responded to more.
3. Working with special offers. If a store mainly sells products with small margins; buyers should be offered the most highly profitable products as a companion product.
4. Customization. Involves individualization of sales. For example, if a store sells mugs, then it can offer the buyer to purchase a product with a print of their choice that costs twice as much as an analogue with the manufacturer’s design. Constantly conduct experiments and evaluate their results. Customization is an essential component in business development.

• How to sell a product at a higher price and earn more: 8 simple ways

Pricing policy factors influencing pricing

The company's choice of pricing policy is determined by a number of factors. Let's look at each of them.

• Value factor.

This is one of the most important indicators when choosing a pricing policy. Any product is more or less capable of satisfying customer requirements. To reconcile the cost and utility of a product, a company can give it more value - through promotional activities, show the buyer how good it is and set a price that is consistent with its real value.

• Cost factor.

The minimum cost of production consists of costs and profit. The easiest method of pricing is to add an acceptable rate of profit for known costs and expenses. But even if the price covers the costs, there is no guarantee that the product will be bought. In this regard, some manufacturing companies go bankrupt when the price of their products on the market becomes less than production costs and costs associated with its implementation.

• Competition factor.

Pricing policy is very dependent on competition. A company can increase competition by choosing a high price, or eliminate it by setting a minimum price. If the creation of a product involves a complex production process or a special release method, then low cost will not attract competitors. But with high prices, rival companies will understand what to do.

• Sales promotion factor.

The price of products includes a trade margin, designed to recoup all measures aimed at stimulating sales. When a product enters the market, advertising must cross a threshold of perception before consumers become aware of the new product.

In the future, funds from the sale of goods should cover the costs aimed at stimulating sales.

• Distribution factor.

The cost of production largely depends on its distribution. The closer the product is to the buyer, the more expensive it is for the company to distribute it. If the product is delivered directly to the buyer, then each concluded transaction will turn into a separate operation. The manufacturer will receive the funds due to the supplier, but at the same time his production costs will increase.

This distribution method is good because it allows you to completely control sales and marketing. If a product is purchased by a large retail trade consumer or wholesaler, sales are no longer calculated in units, but in tens. In this case, control over the sale of goods and marketing is lost.

Distribution - most important factor in marketing after the product itself. A product is not always able to fully satisfy the requirements of all consumers. Understanding this, manufacturers, depending on the price level, are more or less willing to make concessions in quality, weight, color, characteristics, etc. But, even if the seller, offering the lowest prices in his market segment, does not have the goods at the right time in in the right place, no promotional activities will help him.

Finding professional distributors who would be willing to sell goods is a rather expensive process. Intermediaries want to receive decent remuneration for storing products in warehouses and distributing them. The amount for these purposes must be included in the cost of goods. At the same time, the company must ensure that costs do not exceed similar costs of competitors.

• Public opinion factor.

The company's pricing policy largely depends on this driving force. As a rule, buyers have an established opinion about the cost of products. It doesn’t matter whether it is consumer or industrial.

When purchasing a product, people take into account certain price limits within which they are willing to buy it. The company must either not go beyond them, or let the buyer understand why the cost of the product does not fit within these limits.

The manufactured products may be better than their analogues in terms of their characteristics. If the audience perceives these advantages positively, then the price can be increased. If a product does not have obvious advantages, the company should conduct additional advertising campaigns or otherwise stimulate sales.

• Service factor.

There are pre-sales, sales and after-sales services. The costs of this must be included in the cost of the products offered. Such expenses, as a rule, include activities related to the preparation of quotes, carrying out calculations, installing equipment, delivering products to the point of sale, training and retraining of service personnel (salespeople, cashiers, customer interaction consultants), providing a guarantee or the right to purchase installment terms.

Many types of products do not require after-sales service. However, at the same time, a significant part of consumer goods (groceries, everyday goods) requires pre-sale service, for example, their placement in a display case, demonstration of characteristics. The costs of all these services must be included in the price of the goods.

• Customer service rules that increase sales in 3 stages

Development and formation of pricing policy: 7 stages

1. First, the enterprise determines what goal it should pursue. For example, this could be an exit to new level sales or business development in general.
2. At the next stage, internal marketing research is carried out. Are being assessed production capacity equipment, costs of paying wages to staff, costs of raw materials and materials, costs of delivering products to points of sale and searching for new distribution channels, investments in marketing activities to promote sales, etc.
3. Next, the company looks at what the pricing policy is, how flexible it is, how it is formed, what price range is set for similar products, and how changing market factors influence customer preferences.
4. At the fourth stage, the enterprise decides how it will set the retail price for goods. The main criterion when determining the approach to pricing is the maximum high profit from sales.
5. The fifth stage is the development of programs for adapting value to a changing market environment. The company analyzes what determines the level of demand among buyers and why the price has to be adjusted. This need may be determined by:

• increased costs for the production process and employee salaries;
• the need to increase production capacity and attract additional labor;
• the general state of the economy, prerequisites for the emergence of a crisis;
• quality of goods;
• a set of functional properties of the product;
• availability of similar products on the market;
• the prestige of the brand under which the products are sold;
• income of possible buyers;
• stages of the product life cycle;
• dynamics of demand development;
• type of market.

These parameters can be combined with each other and supplemented with other conditions. The main difficulty on at this stage is that most indicators cannot be measured quantitatively.

6. The sixth stage is the final one, where the cost of the goods turns into monetary equivalent. The result of the pricing policy is always the price, the correctness of which is judged by the buyer. It is he who decides how optimally the consumer value of the product and its monetary value.

Before using a particular pricing policy, one cannot help but take into account the general retail level prices in everyday dynamics. Such data can be provided by statistical directories, catalogs of various companies and other sources.

How to analyze pricing policy

Analysis of pricing policy involves studying the price level. Experts discuss whether the current price of a product can ensure profitability, how attractive it is in comparison with competitors’ prices, how elastic demand is in terms of price, what kind of pricing policy the government is pursuing, and also look at other parameters.

When a company sets unfavorable prices, it finds out what is causing it. The formation of unprofitable costs may be associated with the need to maintain sales at the same level while the quality of the product decreases, market capture policies, government pricing policies and other reasons. When a company evaluates how attractive the price of its products is to customers, it compares its prices with the average prices of its competitors for similar products in the industry.

If demand is elastic and the company sets itself the goal of capturing the market, then it can reduce the price. If it wants to maintain its market share, it can increase its value. If you plan to maximize profits, you should set the optimal price.

The basis for constructing a cost function can be the direct calculation method (selective), algebraic or mixed method. The basis for calculating the optimal cost and sales level is the condition of profit maximization, which is achieved if marginal costs and marginal revenue are equal.

The maximum profit is calculated as the derivative of the income function:

(C x D)’ = (a0 x D2 + a1 x D)’ = 2 a0 x D + a1

Marginal cost in economic terms is the cost of producing an additional unit of a good. Other things being equal, they are equal to variable costs per unit of output. The mathematical derivative of the cost function also equals the variable cost per unit:

C ‘ = (VCed x D + FC) ‘ = VCed

Let us imagine the equality of marginal revenue and marginal costs:

2 a0 x D + a1 = VCed

In this case, to calculate the optimal sales volume (Dopt), the following formula is used:

Dopt = (VCed – a1) / 2 a0

To calculate the optimal price (Tsopt) use the following formula:

Copt = a0 x Dopt + a1

Thanks to the results of the analysis of pricing policy, the company can determine how effective the current strategy is and, if necessary, make changes to it. Adjustments to pricing policies should be made based on the life cycle or type of product. For example, if an enterprise has recently begun to produce a product, its pricing policy should be aimed at capturing the market environment. If the product is at maturity, the price should be set to generate short-term profit. If a product is in a period of decline, the cost is formed so that the previous level of sales can be maintained.

The basis of a market economy is made up of financially independent commodity producers, for whom price is the decisive indicator of production and economic activity. If a company has chosen the right pricing strategy, correctly forms prices and uses economically proven pricing methods, then it will certainly achieve success and good financial performance in its work. Its form of ownership does not matter.

Mistakes that make pricing policy management ineffective

Pricing policy is one of the fundamental factors influencing the successful operation of a company. In this regard, prices should be set very carefully.

Often, marketers and business managers make a number of mistakes that lead to unsatisfactory economic performance. You need to constantly be in close cooperation with the production department in order to know about all the cost items that appear during the manufacture of goods without exception. If a company misses even the slightest detail, it risks reducing the efficiency of its work in the future.

Before launching products on sale, it is necessary to conduct detailed marketing research. Based on its results, you can judge how valuable the product is to the buyer. If the company considers that it is not necessary to carry out this event, then it may well set an unreasonably low cost and miss out on possible profits that would allow it to expand production.

You should also pay attention to the actions of competitors, in particular what pricing policy they follow. Several need to be studied possible options developments that determine the reaction of competitors to your events. If you underestimate your rivals, you may well lose your position in the market to them due to ineffective pricing policies.

Pricing policy of an enterprise using the example of well-known companies

• Coca-Cola.

The Coca-Cola Company's pricing policy is focused on seasonal demand. Since in summer time people consume soft drinks in the largest quantities, the company “negotiates” the price from resellers. That is, if intermediaries set a markup that does not exceed 15%, the goods are sold on preferential terms. As a result, the final price for Coca-Cola products is formed. Such pricing and pricing policy have allowed The Coca-Cola Company to occupy a leadership position among domestic and foreign manufacturers for a very long time.

• Danone.

Today Danone is the undisputed leader in the dairy products market. This position allows it to set the highest possible prices, while offering the buyer a product of excellent quality. Such a pricing policy brings super-profits to the company - it “skims the cream” from the segment of buyers who have a special commitment to the brand. When a given category becomes saturated with products, Danone begins to gradually reduce prices in order to achieve loyalty among consumers of other groups.

• Aeroflot.

The company's pricing policy is that Aeroflot offers a variety of tariffs, presented in three directions: a simplified tariff schedule, rates for sale on the Internet and packages of new offers. Prices for air tickets in all three categories allow the company to earn a good income and take a leading position in the market in its industry.

Aeroflot's pricing policy is structured in such a way that each passenger can choose the optimal price conditions for themselves. The company takes into account the dynamics of pricing offers from competing companies and uses the obtained data in its work. It should also be noted that Aeroflot air transportation is available to many categories of buyers, since the company provides preferential rates and various kinds of discounts.

• Apple.

The company managed to build such a pricing policy that the price for one unit of goods cannot be lower than $1,000, and with the release of each new product model, brand followers immediately want to purchase it. Expert estimates suggest that the enterprise value will very soon be equal to one trillion dollars, which will make Apple the most expensive brand in history.

Even at the very start, Apple's pricing policy was strict. The company was guided by the fact that the majority of the consumer audience perceives “expensive” as “quality” and does not attach much importance to overpayment.

Apple does not use a discount system. The only exception is when students can purchase brand products a little cheaper, but even here the buyer's savings do not exceed $100.

Both sales offices and resellers adhere to this pricing policy. The only way to buy new Apple products at a discount is on the Internet, for example, on eBay.

• Samsung.

Samsung's pricing policy is based on two main principles. Firstly, the enterprise focuses on a brand that occupies a leadership position. Secondly, it uses techniques psychological impact per consumer. The price of one unit of goods is never expressed as a whole number, for example, 4990 rubles.

Samsung products are designed for consumers with average incomes and above. Despite the low cost, the brand's products are of very high quality. A small component of the price is for warranty service. Its presence increases the loyalty of consumers aimed at purchasing equipment and comparing offers from different manufacturers.

Information about the experts

Igor Lipsits, Professor of the Department of Marketing, State University - Higher School of Economics, Moscow. Igor Lipsits - Doctor of Economics, Professor. Author of 20 monographs and textbooks. Consults foreign and Russian companies(including RAO UES of Russia, AFK Sistema) on marketing and business planning.

Herman Simon, CEO of Simon-Kucher & Partners Strategy & Marketing Consultants, pricing expert, Bonn. Herman Simon is director of Simon-Kucher & Partners Strategy & Marketing Consultants (New York). The company has 33 offices in 23 countries. Pricing expert. He is one of the five recognized experts in the field of management along with Peter Drucker, Fredmund Malik, Michael Porter and Philip Kotler. In the fall of 2016, his book “Confessions of a Pricing Master” was published in Russia. How price affects profit, revenue, market share, sales volume and company survival” (M.: Byblos, 2017. - 199 pp.).

Pricing and pricing policy

Pricing is the process of setting prices for goods and services. There are two main pricing systems: market and centralized state. Market pricing operates on the basis of the interaction of supply and demand; government pricing is the formation of prices government agencies. In market conditions, pricing is a complex process influenced by many factors. In each case, the marketing service will have to choose the pricing policy of the enterprise.

The pricing policy of an enterprise is to set appropriate prices for goods and services and thus adjust them depending on the market situation by interrelating the prices of goods within the range, using special discounts and price changes, the ratio of the enterprise’s prices and the prices of competitors, methods of formation prices for new goods in order to capture its maximum possible share, achieve the planned amount of profit and successfully solve all strategic and tactical tasks.

When developing pricing policies, marketers should get answers to the following questions: what is the market model; what place does the price take among competitors in the market segments where the enterprise operates; what price calculation method should be adopted; what should be the pricing policy for new products; how the price should change depending on the life cycle of the product; what are the costs? Pricing policy has a long-term impact on the activities of the enterprise. Therefore, before developing it, it is necessary to analyze all external (independent of the enterprise) and internal (depending on the enterprise) factors influencing the development of a pricing strategy.

Main factors external environment factors influencing the price level are: government policy; political stability in the country, as well as in the countries where the company’s products are sold; resource provision; government regulation economics; perfection of tax legislation; general inflation rate; nature of demand; presence and level of competition, etc.

The main factors of the internal environment of an enterprise that influence pricing include: product properties; quality and value of products for the buyer; the specifics of the products produced (the higher the degree of processing and the more unique the quality, the higher the price); method of production, procurement of raw materials and supplies (products of small-scale and individual production have a higher cost, mass-produced goods have relatively low costs and not so high a price); mobility of the production process; targeting market segments; life cycle goods; duration of the product distribution cycle from producer to consumer; differences between market segments or customer demand factors; competitors' reactions; service organization; image of the enterprise in the domestic and foreign markets; product promotion activities, marketing goals.

The pricing strategy is linked to the overall goals of the enterprise in the market. Such goals may be: increasing sales of goods; obtaining a given or maximum amount of profit; ensuring survival (winning a larger market share); gaining market leadership; maintaining the existing economic situation in the fight against competitors; formation of a certain image of a product, etc. An enterprise chooses each of its goals based on certain reasons or its financial situation.

The pricing policy of an enterprise can be formed on the basis of costs, demand and competition. When forming a cost-based pricing policy, prices are determined based on production costs, service costs, overhead costs and estimated profits. When forming a pricing policy based on demand, the price is determined after studying customer demand and setting prices acceptable for target market. When forming a pricing policy based on competition, prices can be at market levels, below or above them. All three approaches require a comprehensive solution to a number of problems determined by the choice of one or another pricing policy.

When forming a pricing policy, a marketer should answer the following basic questions: what price would the buyer be willing to pay for the company’s product; How does a change in price affect sales volume? what are the constituent cost components; what is the nature of competition in the segment; what is the minimum price level that ensures a break-even price for the enterprise; will delivery of goods to the buyer affect the increase in sales volume; what discount can be provided to customers, etc.

Before forming a pricing policy, it is necessary to determine the model of the market into which the enterprise intends to enter. There are several market models: pure competition market, pure monopoly market, monopolistic competition market, oligopolistic competition.

Characteristic features of the pure competition market model are the many sellers and buyers of any similar product. No buyer or seller has a significant influence on the level of market prices. There are usually no obstacles to entering such a market. The costs of developing a price policy are minimal, since the price level is determined by the relationship between supply and demand.

Pure monopoly market model. In this case, one enterprise is the only producer and seller, there is price control, and entry into such a market may be blocked. With this model, no special pricing mechanism is required.

Monopolistic competition market model. With this market model, there is a relatively large number of sellers and buyers, easy conditions for entering the market, and some control over prices within very narrow limits. Such a market requires marketing research and the development of a specific pricing policy. In oligopolistic competition, a small number of enterprises enter the market and dominate the market. They prefer to negotiate prices, setting a convenient trading margin and dividing the market into zones of influence. This model requires a careful pricing mechanism.

The main stages of the pricing process are: setting pricing objectives; determining the level of demand; determination of costs; analysis of prices for competitors' products; selection of pricing methods; setting the final price. Pricing objectives are determined by the overall goals of the enterprise. The main objectives of pricing can be: survival in the market (ensuring sales); profit maximization; maximizing market share; gaining leadership in product quality; orientation to the existing market situation.

If an enterprise operates in a highly competitive environment, when there are many manufacturers with similar products on the market, the main task is to ensure sales (survival). When choosing a pricing policy, marketers must study the pricing policies and prices of their competitors, and the quality of their products. If a company's product is of lower quality than its competitor's, it cannot charge the same price as a competitor. Reduced prices, market penetration prices are usually used in cases where the price demand of buyers is flexible and elastic; if the enterprise wants to achieve maximum growth in sales volume and increase the total profit by slightly reducing the profit from each unit of goods; if the enterprise assumes that an increase in sales volume will reduce the relative costs of production and sales; if low prices reduce the level of competition; if there is a large consumption market, as well as when trying to capture a large market share.

The main objectives of an enterprise to maximize profits can be: establishing a stable income corresponding to the average profit for several years; calculation of price growth, and, consequently, profit due to the increase in the cost of capital investments; the desire to quickly obtain an initial profit if the enterprise is not confident in the favorable development of the business or lacks Money. When focusing on maximizing profits, the company must choose the appropriate price ( high level). Typically, in such cases, current performance is more important than long-term performance.

When fulfilling the task of maximizing market share, the enterprise must ensure an increase in sales volumes. This goal is set on the assumption that a large market share will have low costs and high long-term profit margins in the future. Here you need to know for what period of time you need to reduce prices and to what level.

When solving the problem of achieving market leadership in product quality, it is necessary to give the goods new properties, increase their durability, reliability, etc. To do this, it is necessary to carry out research and development work, which usually leads to high costs and high prices. Improving the quality of products allows you to outperform competitors, but in this case, high prices should be considered by buyers as quite acceptable.

If the goal of pricing is to focus on the existing market position, unfavorable moves by competitors should be avoided. So, if competitors have reduced the price in order to gain a larger market share, then the enterprise must also reduce it to the limits possible for itself. The opposite situation may also occur, when the price level increases.

The next step in the pricing process is to determine the level of demand. To determine how sensitive demand is to changes in price, a demand curve should be drawn for each product, which allows one to establish the relationship between price, demand and supply and characterize the elasticity of demand. There is an inversely proportional relationship between price and demand, when an increase in price decreases demand or, conversely, a decrease in price leads to an increase in demand. This dependence is called elastic, flexible. But it may also happen that an increase in price will lead to an increase in demand. Typically, this situation occurs when buyers believe that high prices correspond to more high quality goods. At this stage, the main task of the marketer is to establish the relationship between price and demand (elastic or inelastic); setting a limit for increasing or decreasing the price at which demand increases; determining the quantitative relationship between price and demand and calculating the elasticity coefficient. Based on this stage, the maximum price of the product is determined.

Costs have a significant impact on the pricing policy of an enterprise. At the cost estimation stage, the minimum price that can be set for the product should be determined. The minimum price for a product is determined by the production costs of the product, its distribution and sales channels, including the rate of profit. Costs can be fixed, variable or gross. Fixed costs are expenses that remain unchanged ( wage, rent, heat supply, interest payments, etc.). They are always present, regardless of the form of the enterprise and the level of production.

Variable costs change in direct proportion to the level of production. For example, in the manufacture mobile phones the enterprise incurs costs for the purchase of special equipment, plastics, conductors, packaging, etc. Per unit of production, these costs usually remain unchanged. They are called variables because they total amount varies depending on the number of units of products. Gross costs are the sum of fixed and variable costs at each specific level of production. The company strives to receive an amount for the product that would at least cover all gross production costs.

Marginal cost is the incremental or incremental cost associated with producing each additional unit of output over a given level of output. Marginal costs make it possible to determine the unit of production on which the company should focus its attention: change the unit price of the product, reduce or increase production.

If costs are reduced, the company can reduce its price or increase its profit share. If costs increase, it is possible to shift their increase to the buyer by increasing prices, provided that there is demand for the product, or modify the product in order to reduce their costs and maintain the price level, or increase them, or remove the product from production as unprofitable. The price must cover the costs, otherwise there is no point in producing the product. This requires the establishment and analysis of factors affecting production costs and costs. individual species products.

When choosing distribution channels, in order to successfully cooperate with participants in distribution channels, you should take into account the need to cover costs and make a profit both at your own enterprise and with the intermediary: provide price guarantees, especially when introducing a new product to the market, provide sales promotion measures.

The next steps in the pricing process are to analyze the prices of competitors' products and select a pricing method. The prices set by competitors largely determine the pricing strategy of the enterprise, so they should be carefully analyzed. As a rule, buyers prefer a product whose price corresponds to the level of quality. To analyze competitors' prices, you can use both expert assessments of enterprise specialists and a survey of customers themselves. By comparing the quality indicators and prices of competitors with similar indicators of their own enterprise, marketers must draw certain conclusions about the price level.

Price adjustment occurs through changes in price lists, the use of markups, allowances, discounts, and compensations. Implementation of pricing policy, development of pricing strategy, and their practical implementation require highly qualified from employees of marketing services, responsibility for decisions made and creative approach.